How can you cultivate a strong financial safety net for your siblings?

livemint.com:

Also Read: Mutual fund assets skyrocket 35% in FY24, revealing key March trends One strategic avenue for securing the financial future of younger siblings is through mutual fund systematic investment plans (SIPs). These plans offer a generous gesture and a strategic move toward long-term financial security.

Even modest investments can yield significant growth over time, thanks to the compounding interest and rupee-cost averaging inherent in SIPs. With India's consumer-driven economy experiencing robust growth, the potential returns on such investments are substantial.

Also Read: How to become rich: Your ₹5000 monthly SIP can help you grow ₹5.22 crore.

Mutual fund calculator explains Moreover, mutual funds offer flexibility, allowing investors to tailor investment strategies according to their siblings' age and future financial requirements. For instance, equity mutual funds present optimal growth potential for siblings requiring educational support in the future, while transitioning to hybrid funds as their financial needs evolve can effectively balance risk and returns.

In addition to mutual funds, insurance is a crucial safety net for safeguarding younger siblings' financial well-being. By securing term life insurance policies and comprehensive health insurance plans, millennials can ensure their siblings are adequately supported in unforeseen circumstances.